The BRICs to consider now
Many BlackRock fund managers have raised their emerging market (EM) allocations lately, and we've warmed up in general to the asset class after a long underweight. EM valuations overall, as measured by the MSCI Emerging Markets Index, look cheap, and we see value for long-term investors. A Fed on hold and weaker dollar are good news for the asset class (see the chart below), and there are signs of progress on structural reforms in certain EM countries.
We like BrazilGDP
We're neutral toward Russiaoil prices
We favor India
We like ChinaTerry Simpson, CFA, is a multi-asset strategist for the BlackRock Investment Institute . He is a regular contributor to The Blog.